JOHNS CREEK, Ga., July 28, 2017 (GLOBE NEWSWIRE) -- Saia, Inc. (NASDAQ:SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported second quarter 2017 financial results.

Second Quarter 2017 Compared to Second Quarter 2016 Results
  • Revenues were $358.2 million, a 14.8% increase
  • LTL Shipments and Tonnage rose 7.4% and 7.1%, respectively
  • LTL Revenue per hundredweight increased 7.3%
  • Operating ratio improved by 130 basis points to 91.7%
  • Operating income increased by 36.8% to $29.7 million
  • Net income rose 32.6% to $17.6 million
  • Diluted earnings per share were $0.68 compared to $0.52

"I am pleased with our execution in the first half of the year and our second quarter results reflect favorably on our team's ability to manage the growth we are experiencing," said Saia President and Chief Executive Officer, Rick O'Dell.  "We maintained quality service for our customers and improved our cargo claims ratio for the quarter to 0.67% from 0.75% last year, but to maintain service we did have to add employees and use purchased transportation to a greater extent than what I would have liked," O'Dell continued.

"For the balance of the year, our focus will be on our Northeastern expansion, cost control and mix management.  Given growing volumes, it is particularly important that all freight meet increasing profitability criteria," concluded Mr. O'Dell.                                                                                                            

Financial Position and Capital Expenditures

Total debt was $148.4 million at June 30, 2017 and inclusive of the cash on-hand, net debt to total capital was 22.3%.  This compares to total debt of $139.4 million and net debt to total capital of 23.4% at June 30, 2016.

Net capital expenditures in the first half of 2017 were $155.1 million including equipment acquired with capital leases.  This compares to $136.2 million in net capital expenditures in the first half of 2016.  The Company currently plans net capital expenditures in 2017 of approximately $225 million.

Conference CallManagement will hold a conference call to discuss quarterly results today at 10:30 a.m. Eastern Time.  To participate in the call, please dial 877-545-1403 or 719-325-4747 referencing conference ID #6110114.  Callers should dial in five to ten minutes in advance of the conference call.  This call will be webcast live via the Company web site at www.saiacorp.com.  A replay of the call will be offered two hours after the completion of the call through September 22, 2017 at 1:30 p.m. Eastern Time.  The replay will be available by dialing 1-888-203-1112 or 719-457-0820.

Saia, Inc. (NASDAQ:SAIA) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services.  With headquarters in Georgia, Saia LTL Freight operates 152 terminals across 38 states.  For more information on Saia, Inc. visit the Investor Relations section at www.saiacorp.com.

The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand the future prospects of a company and make informed investment decisions. This news release contains these types of statements, which are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.

Words such as "anticipate," "estimate," "expect," "project," "intend," "may," "plan," "predict," "believe," "should" and similar words or expressions are intended to identify forward-looking statements. Investors should not place undue reliance on forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements reflect the present expectation of future events of our management as of the date of this news release and are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors, risks, uncertainties and assumptions include, but are not limited to, (1) general economic conditions including downturns in the business cycle; (2) effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; (3) the creditworthiness of our customers and their ability to pay for services; (4) failure to achieve acquisition synergies; (5) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; (6) economic declines in the geographic regions or industries in which our customers operate; (7) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (8) loss of significant customers; (9) the Company's need for capital and uncertainty of the credit markets; (10) the possibility of defaults under the Company's debt agreements (including violation of financial covenants); (11) possible issuance of equity which would dilute stock ownership; (12) integration risks; (13) the effect of litigation including class action lawsuits; (14) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; (15) governmental regulations, including but not limited to Hours of Service, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, compliance with legislation requiring companies to evaluate their internal control over financial reporting, Homeland Security, environmental regulations and the Food and Drug Administration; (16) changes in interpretation of accounting principles; (17) dependence on key employees; (18) inclement weather; (19) labor relations, including the adverse impact should a portion of the Company's workforce become unionized; (20) terrorism risks; (21) self-insurance claims and other expense volatility; (22) cost and availability of insurance coverage; (23) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (24) social media risks; (25) cyber security risk;  (26) failure to successfully execute the strategy to expand the Company's service geography into the Northeastern United States; and (27) other financial, operational and legal risks and uncertainties detailed from time to time in the Company's SEC filings.  As a result of these and other factors, no assurance can be given as to our future results and achievements.  A forward looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur.

Saia, Inc. and Subsidiaries  
Condensed Consolidated Balance Sheets  
(Amounts in thousands)  
(Unaudited)  
           
    June 30, 2017   December 31,2016  
ASSETS          
           
CURRENT ASSETS:          
Cash and cash equivalents   $   399     $   1,539    
Accounts receivable, net       167,012         135,083    
Prepaid expenses and other       30,219         29,857    
Total current assets       197,630         166,479    
           
PROPERTY AND EQUIPMENT:          
Cost       1,233,906         1,101,946    
Less: accumulated depreciation       520,682         497,827    
Net property and equipment       713,224         604,119    
 OTHER ASSETS       29,476         29,772    
Total assets   $   940,330     $   800,370    
           
LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                  
           
CURRENT LIABILITIES:          
Accounts payable    $   55,746     $   45,149    
Wages and employees' benefits       40,872         31,700    
Other current liabilities       54,414         51,333    
Current portion of long-term debt       16,669         16,762    
Total current liabilities       167,701         144,944    
           
OTHER LIABILITIES:          
Long-term debt, less current portion       131,699         57,042    
Deferred income taxes       87,075         80,199    
Claims, insurance and other       38,855         35,107    
Total other liabilities       257,629         172,348    
           
STOCKHOLDERS' EQUITY:          
Common stock       25         25    
Additional paid-in capital       241,057         237,846    
Deferred compensation trust       (3,469 )       (3,190 )  
Retained earnings       277,387         248,397    
Total stockholders' equity       515,000         483,078    
Total liabilities and stockholders' equity    $   940,330     $   800,370    
           

Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Six Months Ended June 30, 2017 and 2016  
(Amounts in thousands, except per share data)  
(Unaudited)  
           
    Second Quarter   Six Months  
     2017    2016      2017    2016    
OPERATING REVENUE   $   358,160   $   311,905     $   675,197   $   601,816    
                   
OPERATING EXPENSES:                  
Salaries, wages and employees' benefits        196,388     175,924         377,291     346,190    
Purchased transportation        22,363     14,315         37,138     26,782    
Fuel, operating expenses and supplies       66,092     59,026         130,082     113,066    
Operating taxes and licenses        10,875     10,126         21,457     20,166    
Claims and insurance        10,426     10,880         19,475     18,961    
Depreciation and amortization       22,182     19,740         42,269     36,983    
Loss from property disposals, net       116     173         248     363    
Total operating expenses        328,442       290,184         627,960       562,511    
                   
OPERATING INCOME        29,718       21,721         47,237       39,305    
                   
NONOPERATING EXPENSES (INCOME):                  
Interest expense       1,538       1,264         2,449       2,227    
Other, net       90       (36 )       188       (43 )  
Nonoperating expenses, net       1,628       1,228         2,637       2,184    
                   
INCOME BEFORE INCOME TAXES       28,090       20,493         44,600       37,121    
Income tax expense       10,487       7,218         15,610       13,271    
NET INCOME    $   17,603   $   13,275     $   28,990   $   23,850    
                   
Average common shares outstanding - basic       25,501       25,030         25,477       25,014    
Average common shares outstanding - diluted                                       26,000       25,583         25,982       25,560    
                   
Basic earnings per share   $   0.69   $   0.53     $   1.14   $   0.95    
Diluted earnings per share   $   0.68   $   0.52     $   1.12   $   0.93    
                   

Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Six Months Ended June 30, 2017 and 2016  
(Amounts in thousands)  
(Unaudited)  
    Six Months  
     2017    2016  
OPERATING ACTIVITIES:          
Net cash provided by operating activities (1)   $   79,317     $   66,464    
Net cash provided by operating activities       79,317         66,464    
           
INVESTING ACTIVITIES:          
Acquisition of property and equipment       (127,330 )       (102,140 )  
Proceeds from disposal of property and equipment       923         595    
Net cash used in investing activities       (126,407 )       (101,545 )  
           
FINANCING ACTIVITIES:          
Repayment of long-term debt       (3,571 )       (3,572 )  
Borrowing of revolving credit agreement, net       55,014         42,756    
Proceeds from stock option exercises       1,288         248    
Shares withheld for taxes (1)       (1,211 )       (650 )  
Other financing activity       (5,570 )       (3,465 )  
Net cash provided by financing activities       45,950         35,317    
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS       (1,140 )       236    
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD       1,539         124    
CASH AND CASH EQUIVALENTS, END OF PERIOD   $   399     $   360    
           
NON-CASH ITEMS:          
Equipment financed with capital leases   $   28,691     $   34,683    
           
(1)  June 30, 2016 balances have been reclassified to conform with the 2017 adoption of the Financial Accounting Standards Board Accounting StandardsUpdate 2016-09, Improvement to Employee Share-Based Payment Accounting.  
 

Saia, Inc. and Subsidiaries  
Financial   Information  
For the Quarters Ended June 30, 2017 and 2016  
(Unaudited)  
                             
                  Second Quarter      
      Second Quarter    %    Amount/Workday    %   
       2017     2016    Change   2017   2016   Change  
Workdays               64   64      
                             
Operating ratio      91.7 %     93.0 %                  
                             
Tonnage (1) LTL   984       919       7.1     15.37   14.36     7.1  
    TL   203       182       11.4     3.17   2.85     11.4  
                             
Shipments (1) LTL   1,760       1,639       7.4     27.50   25.60     7.4  
    TL   28       26       10.1     0.45   0.40     10.1  
                             
Revenue/cwt. (2) LTL $   16.89     $   15.73       7.3                
    TL $   5.83     $   5.50       5.9                
                             
Revenue/shipment (2) LTL $   188.78     $   176.45       7.0                
    TL $   830.32     $   775.05       7.1                
                             
Pounds/shipment LTL   1,118       1,121       (0.3 )              
    TL   14,250       14,090       1.1                
                             
Length of Haul (3)     806       786       2.5                
                             
                             
(1 ) In thousands                          
                             
(2 ) Revenue does not include the adjustment required for financial statement purposes in accordance with the Company'srevenue recognition policy and other revenue.   
                             
(3 ) In miles                          
                               
CONTACT:  Saia, Inc.Doug Coldcol@saia.com678.542.3910

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